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GLNG AFRICA GLNG
NLNG aims to cut LPG exports
PERFORMANCE THE Nigeria LNG (NLNG) consortium has said NLNG has already taken some steps to
it will reduce exports in order to raise the vol- address this shift in demand. For example, it has
ume of LPG delivered to the domestic market to expanded its roster of off-takers to include 43
450,000 tonnes per year (tpy), in line with previ- companies, up from just six in 2007. But it may
ously announced plans. have to do more: according to Mele Kyari, the
According to Philip Mshelbila, NLNG’s man- group managing director of state-owned Nige-
aging director, the consortium is cutting exports rian National Petroleum Corp. (NNPC), said on
in light of Abuja’s efforts to promote domestic gas November 2 that the country needed to spend The consortium
consumption. “As part of the measures to sup- about $2.7bn on natural gas and LPG distribu-
port the federal government’s efforts to deepen tion infrastructure projects. is cutting exports
domestic gas supply and economic growth, NNPC is in the process of being replaced by a
Nigeria LNG is reducing LPG exports and new state-controlled entity – Nigerian National in light of Abuja’s
increasing supplies to [the] domestic market,” Petroleum Co. Ltd (NNPC Ltd), an incorpo-
he was quoted by S&P Global Platts as saying at rated firm with no direct access to government efforts to promote
an industry conference in Lagos on November funding. Presumably NNPC Ltd will inherit domestic gas
2. “NLNG is now increasing supply to domestic NNPC’s 49% stake in NLNG. The remaining
market to 450,000 tonnes per annum.” equity will continue to be split between Royal consumption.
Mshelbila did not say when the group hoped Dutch Shell (UK/Netherlands), with 25.6%;
to push deliveries up to 450,000 tpy. Earlier this TotalEnergies (France), with 15%, and Eni
year, though, his predecessor Tony Attah noted (Italy), with 10.4%.
that NLNG had turned out 370,000 tonnes of Together, the partners operate a gas lique-
LPG in 2020 and aimed to raise the figure to faction plant on Bonny Island. The facility has
450,000 tonnes in 2022. been operating since 1999, and it has six produc-
Until recently, the consortium supplied only tion trains capable of turning out a total of 22.5
about 250,000 tpy of LPG to Nigerian consum- mn tpy. Its capacity is set to rise to 30mn tpy as
ers and exported the remainder of its output to a result of the Train 7 project, which envisions
Western markets. However, demand for LPG has the construction of a seventh production train
been rising in the West African country, and offi- that can produce 4.2mn tpy, as well as the debot-
cials in Abuja expect it to climb from the current tlenecking of existing trains, which will add
level of about 1mn tpy to 3mn tpy by 2026. another 3.4mn tpy of capacity.
P10 www. NEWSBASE .com Week 44 05•November•2021
